TransAct Technologies Incorporated (NASDAQ:TACT) Q2 2023 Earnings Call Transcript

John Dillon: Verbally, unfortunately, that’s an area from a marketing standpoint that we’re up leveling. We got a great product technically. We’re very proud of it. We got great engineers. But feeds and speeds isn’t why managers buy stuff. They buy it because of the business value it adds. And one of the things that I have encountered is that you can look at a brochure from TransAct and candidly, it talks about a nice bright screen, talks about 300 dpi printing. It talks about how reliable it is and those are all really important. But at the end of the day, you want to apply those things to some business problem you’ve got in your operation. And I’m working to — if you will, add the business value dimension to our go-to-market from a sales team, whether it’s prospecting, proof of concept or even here’s the ROI on how much it’s going to save if you buy one of these things.

And frankly, the terminals easily pay for themselves in a matter of a few months, and we don’t really market that way. And I think that’s something that you’re going to see that be part of the pointy end of the spear as we move forward.

George Sutton: Great. You mentioned that with the BOHA! 2, you’ve got an ability to go after some of your existing terminals out there. Can you just give us a sense of AccuDate, how many of those are out there in the market that you would view as opportunistic? And if I’m specifically looking at the BOHA! 1, a relevant number there as well.

John Dillon: Steve, do you want to hit that one, because you got the numbers? .

Steven DeMartino: Yes, George, probably I think we’re mainly talking about our first gen, replacing the 9700, and there’s tens of thousands of those out there.

John Dillon: The difference between those 2 is the 9700 a stand-alone unit. Works great, very reliable, good little workhorse, but it’s not online, it’s not connected. And ultimately, my opinion is the BOHA! Terminal can be a platform in the back of the house. And frankly, you could run any software you wanted to run. And so the fact that it’s connected and for large organizations that have multiple stores, the ability to have sort of one menu as it were or different menus in different geographies or to be able to upload stats on this that and the other thing. There’s just a big difference between having interconnectivity of the BOHA! Terminal 2 and the older 9700. So we’re pretty excited about that. We think we’re going to get a lot of upgrades.

The downside in all of this is a gang products we make are so darn reliable. That I love it on one hand, but on the other hand, no break. There’s no planned obsolescence in these things. We’ve got printers out there doing workhorse printers that are out there have been working hard at work for 10 years. And we’re just waiting for the customer to follow and say, it broke, could you get me another one. But with the 9700, the upgrade to being fully connected and being able to do some of the things like you can do today in the 21st century I think, ultimately, it’s going to be really important for the organizations that want to use technology to gain competitive advantage.

George Sutton: Got you. And then final question relative to the printer side. When supply chain normalized and you were able to start shipping, you built fairly significant production capacity added lines, et cetera. Can you just give us an update on what your plans are for — from a production capacity perspective?